Asia's Somerset Grand takes on Metropolis

By Bob Dey

Management of Andrew Krukziener's $180 million Metropolis project in Auckland is being taken over by an Asian trio of serviced apartment/hotels under the Somerset Grand label - ultimately owned by the Singapore Government.

But the move of a top executive from Singapore to run the New Zealand property is part of an expansion plan for this and other Somerset brands.

The other Somerset Grands are in Shanghai, Jakarta and Hanoi. Also carrying the Somerset label are the Somerset Heritage chain, mostly refurbished colonial houses in Singapore, and the straight Somerset brand applied to the group's serviced apartments in Asia.

Mr Krukziener signed a management agreement on Metropolis' 320 serviced apartments with Liang Court Hospitality, whose sale to Singapore Government-controlled Pidemco Land was approved a fortnight ago.

Liang Court has strengthened its balance sheet through an asset swap and issue of shares to Pidemco, and has also changed its name to Somerset Holdings.

"We've been marketing in Singapore in the last two weeks and sold 12 units there on the back of Pidemco," Mr Krukziener said.

He now has 28 of the 375 units left to sell.

Syndication group Waltus Investments took the top two serviced levels for syndicating and bought six more after the issue was oversubscribed.

Four of the 20 commercial spaces at the bottom of the building are still available - one shop on High St, two spaces in the restaurant area and a hairdresser's salon. The retail outlets will open progressively from December to next June.

Jerry Goh, who will run the Somerset Grand business in Auckland, was head of Liang Court's Asia-Pacific operations and from his new base will head an Australasian sector.

"When I joined Liang Court in 1995 we had three properties. The restructured group will own or manage 33 properties in 19 cities."

Both Somerset and Mr Krukziener are looking at expansion to Wellington, Christchurch and Queenstown, and Somerset is looking for Australian opportunities.

The former Liang Court was controlled by Goh Cheng Liang, developer of Gulf Harbour.